PC Jeweller stock zooms 10% after 1.9 million shares change hands

PC Jeweller has been struggling since February last year when banks decided to recall loans amounting to Rs 3,466 crore following the company's loan default disclosures.

Shares of PC Jeweller skyrocketed 10 percent on July 9 after a block deal took place on the counter. A total of 1.9 million shares of PC Jeweller changed hands in bunched trade, showed Bloomberg data. The details of the buyers or sellers were not immediately known.

The stock was locked at 10 percent upper circuit in the previous session as well after the company informed stock exchanges that it had received approval from Punjab National Bank (PNB) for its One Time Settlement (OTS) proposal.

Punjab National Bank (PNB), one of the principal lenders in the consortium supporting PC Jeweller, communicated its approval through a letter dated July 6.

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The jewellery firm informed exchanges that the One Time Settlement (OTS) terms include both cash and equity components, along with provisions for the release of securities and mortgaged properties held by the banks.

This development came over three months after the State Bank of India (SBI), the nation's largest lender, accepted the OTS proposal from PC Jeweller.

At 9:42 am, shares of PC Jeweller were trading over 7 percent higher at Rs 60.24 apiece on NSE. So far this year, the stock has rallied nearly 20 percent, beating Nity's returns of 11 percent during this period.

In the last one year, the stock has zoomed over 80 percent, compared to Nifty's returns of 26 percent during this period.

Also Read | PC Jeweller stock locked in 10% upper circuit after PNB greenlights one time settlement proposal

PC Jewellers has been struggling since February last year when banks decided to recall loans amounting to Rs 3,466 crore following the company's loan default disclosures.

According to the company's 2021-22 annual report, it had taken loans from 14 banks, including SBI, Indian Bank, Union Bank, and Punjab National Bank.

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